GBP/USD advances to fresh 12-day high above 1.34 on USD weakness

• DXY remains under pressure below the 93 mark on Wednesday.
• Technical price action is likely to continue for the remainder of the week.

The GBP/USD pair gained traction on Wednesday and rose above the 1.34 mark to refresh its highest level since December 15 at 1.3430. As of writing, the pair was trading at 1.3425, up 0.37% on the day.

The pair's modest rise seems to be a product of a weakening greenback. After closing the previous week below the 93 mark, the US Dollar Index extended its technical slide in the last week of the year and dropped to its lowest level of the month at 92.57. At the moment, the index is down 0.25% at 92.61. However, with no fundamental drivers behind the DXY's slide, the bearish momentum could have a tough time gathering strength.

Later in the session, pending home sales and the Conference Board's consumer confidence data will be released from the United States.

In the meantime, the GBP may also be finding some demand from the investors amid the UK's FTSE 100 index's 0.27% daily advance. Nonetheless, the subdued trading action could continue until the first week of January, not creating many investing opportunities until then.

Technical levels to consider

The pair could encounter the initial resistance at 1.3450 (Dec. 15 high) ahead of 1.3500 (psychological level) and 1.3550 (Nov. 30 high). On the flip side, supports align at 1.3385 (20-DMA), 1.3310 (Dec. 18 low) and 1.3275 (100-DMA).